HUD Data Center Services Contract Exceeds $108M, Awarded to Peraton

Contract Overview

Contract Amount: $108,572,951 ($108.6M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2020-01-20

End Date: 2025-03-16

Contract Duration: 1,882 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HUD OCIO DATA CENTER SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $108.6 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: HUD OCIO DATA CENTER SERVICES Key points: 1. Contract value is substantial at over $108 million. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established vendor and contract duration. 4. Sector is IT services, specifically computer systems design.

Value Assessment

Rating: good

The contract value of $108.5M over approximately 5 years suggests a significant investment in IT infrastructure. Benchmarking against similar large-scale data center service contracts is necessary for a precise assessment, but the duration and scope indicate a fair market price is likely achievable through competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for the best value to be determined. The use of a delivery order mechanism under a larger contract suggests a structured procurement process.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces to secure competitive bids.

Public Impact

Ensures continued operation of HUD's critical IT data center infrastructure. Supports housing and community development programs through reliable technology. Potential for service disruptions if vendor performance falters. Impacts technology providers and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends to March 2025, requiring ongoing monitoring.
Time and Materials pricing could lead to cost overruns if not managed closely.
Small business participation is not indicated as a requirement.

Positive Signals

Awarded under full and open competition.
Managed by GSA, indicating established procurement oversight.
Supports essential government functions.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar large-scale data center services contracts can vary widely based on scope, duration, and specific services required. The $108M value over nearly 5 years is significant for this type of service.

Small Business Impact

The data indicates that small business participation was not a stated requirement or factor in this contract award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large IT services contract.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which provides a layer of oversight for federal IT procurements. The use of delivery orders under a larger contract structure implies adherence to established acquisition regulations and processes.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration requires sustained oversight.
Lack of explicit small business participation noted.
Dependence on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $108.6 million to PERATON ENTERPRISE SOLUTIONS LLC. HUD OCIO DATA CENTER SERVICES

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $108.6 million.

What is the period of performance?

Start: 2020-01-20. End: 2025-03-16.

What specific IT systems and services are covered under this contract, and how do they align with HUD's mission objectives?

The contract covers computer systems design services, essential for operating HUD's data center. These services are fundamental to maintaining the technological infrastructure that supports HUD's mission of creating strong, sustainable communities and affordable housing. Understanding the specific systems ensures alignment with program delivery and agency goals.

What are the key performance indicators (KPIs) for Peraton Enterprise Solutions LLC, and how is their performance being monitored to mitigate risks?

Key performance indicators likely focus on system uptime, data security, response times for technical support, and successful implementation of any system upgrades or changes. HUD and GSA would be monitoring these KPIs through regular reporting, service level agreement (SLA) reviews, and potentially site visits to ensure Peraton meets its contractual obligations and mitigates risks to critical IT operations.

How does the Time and Materials pricing structure impact the overall cost-effectiveness and potential for budget overruns compared to a fixed-price contract?

Time and Materials (T&M) contracts offer flexibility but carry a higher risk of cost overruns if not strictly managed, as costs are based on actual labor hours and material expenses. While potentially allowing for adaptation to evolving needs, it requires robust oversight from the government to ensure efficiency and prevent unnecessary expenditures, making it less predictable than fixed-price arrangements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID11190013

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $137,231,307

Exercised Options: $112,124,520

Current Obligation: $108,572,951

Subaward Activity

Number of Subawards: 80

Total Subaward Amount: $42,698,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F146DA

IDV Type: FSS

Timeline